1.

The most recent financial statements for Xporter, Inc., are shown here:

Income Statement				Balance Sheet
Sales	$	5,800		Current assets	$	2,500		Current liabilities	$	2,200
Costs		4,400		Fixed assets		8,100		Long-term debt		3,750
Taxable income	$	1,400						Equity		4,650
Taxes (34%)		476		Total	$	10,600		Total	$	10,600
Net income	$	924

Assets, costs, and current liabilities are proportional to sales. Long-term debt and equity are not. The company maintains a constant 30 percent dividend payout ratio. As with every other firm in its industry, next years sales are projected to increase by exactly 10 percent.

What is the external financing needed? (Round your answer to 2 decimal places. (e.g., 32.16))

External financing needed

$

2. The most recent financial statements for Live Co. are shown here:

Income Statement				Balance Sheet
Sales	$	14,100		Current assets	$	10,800		Debt	$	15,300
Costs		8,300		Fixed assets		26,000		Equity		21,500
Taxable income	$	5,800		Total	$	36,800		Total	$	36,800
Taxes (40%)		2,320
Net income	$	3,480

Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payout ratio. No external financing is possible.

What is the internal growth rate? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Internal growth rate

%

3.

The most recent financial statements for Live Co. are shown here:

Income Statement				Balance Sheet
Sales	$	17,700		Current assets	$	11,000		Debt	$	15,500
Costs		13,800		Fixed assets		26,500		Equity		22,000
Taxable income	$	3,900		Total	$	37,500		Total	$	37,500
Taxes (40%)		1,560
Net income	$	2,340

Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 25 percent dividend payout ratio. No external equity financing is possible.

What is the sustainable growth rate? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Sustainable growth rate

%

4.

The Boddy Shoppe has an ROA of 11 percent and a payout ratio of 23 percent.

What is its internal growth rate? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Internal growth rate

%

Rondo Corp. has an ROE of 9 percent and a payout ratio of 17 percent.

What is its sustainable growth rate? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Sustainable growth rate

%